Published: November 19, 2009
A.M. Best Downgrades Ratings of MVP Health Care, Inc.'s Insurance Subsidiaries
OLDWICK, N.J. - (BUSINESS WIRE) - A.M. Best Co. has downgraded the financial strength ratings (FSR)
to B (Fair) from B+ (Good) and issuer credit ratings (ICR) to "bb+" from
"bbb-" of MVP Health Insurance Company (Schenectady, NY) and Preferred
Assurance Company, Inc. (Rochester, NY). Additionally, A.M. Best has
downgraded the FSRs to B- (Fair) from B (Fair) and ICRs to "bb-" from
"bb+" of MVP Health Plan of New Hampshire, Inc. (Bedford, NH) and MVP
Health Insurance Company of NH, Inc. (Manchester, NH). All of the
above ratings have been placed under review with negative implications.
Concurrently, A.M. Best has placed under review with negative
implications and affirmed the FSRs of B+ (Good) and ICRs of "bbb-" of MVP
Health Plan, Inc. and MVP Health Services Corp. (both of
Schenectady, NY).
These rating actions follow the reporting of negative capital and
surplus levels at MVP Health Insurance Company and MVP Health Insurance
Plan of New Hampshire, Inc. for third quarter 2009. The negative capital
and surplus levels at these two insurance companies resulted from
underwriting and net losses through September 2009. The management of
the parent company, MVP Health Care, Inc. (Schenectady, NY), is
working to gain regulatory approval from the New York State Insurance
Department and the New York State Department of Health to transfer
capital to these entities.
The ratings will remain under review until sufficient capital levels are
achieved at all of the insurance subsidiaries and the completion of
further discussions with MVP Health Care, Inc's management on full year
2009 projections as well as financial projections for 2010 and the
overall capital management of all insurance subsidiaries.
For Best's Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors, which may have been
considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts:
Bridget Maehr, 908-439-2200, ext. 5321
bridget.maehr@ambest.com
or
Sally
Rosen, 908-439-2200, ext. 5280
sally.rosen@ambest.com
or
Public
Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
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